Trade Setup for Monday: Top 15 things to know before Opening Bell

The Indian market consolidated after a fierce four days of gains pushing benchmark indices above crucial resistance levels. The S&P BSE Sensex reclaimed 41,000 while Nifty50 also climbed above Mount 12K.

Sensex fell 164 points to 41,141 while the Nifty closed 39 points lower at 12,098 on February 7. For the week, Sensex rose 3.5 percent while Nifty rallied 3.75 percent.

Experts are of the view that the knee-jerk reaction was largely due to muted global cues and profit-taking at higher levels. The momentum should resume as long as Nifty holds above 12,000 levels. They feel that there could be a possibility of further downside if Nifty trades below 12,160 levels in the coming week as well.

"In spite of the positive monetary policy which will spur growth in the economy, the market has turned flattish due to the outbreak of the novel coronavirus which is hurting the growth of the world's second-largest economy," Vinod Nair, Head of Research at Geojit Financial Services, told Moneycontrol.

Experts feel that there could be a possibility of further downside if Nifty50 trades below 12,160 levels in the coming week as well. The near term outlook is tilted towards bears as MACD gave a bearish crossover or triggered a sell signal on charts.

According to the pivot charts, the key support level for Nifty is placed at 12,063.3 followed by 12,028.3. If the index continues moving up, key resistance levels to watch out for are 12,144.0 and 12,189.7.

The important pivot level, which will act as crucial support for the index, is placed at 31,085.93 followed by 30,969.96. On the upside, key resistance levels are placed at 31,343.03 and 31,484.16.

Maximum call open interest (OI) of 26.68 lakh contracts was seen at the 12,500 strike price. It will act as a crucial resistance level in the February series. This is followed by 12,400 strike price, which holds 17.45 lakh contracts in open interest, and 12,200, which has accumulated 15.67 lakh contracts in open interest.

Significant call writing was seen at the 12,500 strike price, which added 2.72 lakh contracts, followed by 12,300 strike price that added 2.21 lakh contracts and 12,200 strike price, which added 1.44 lakh contracts.

Call unwinding was witnessed at 11,800 strike price, which shed 81,600 contracts, followed by 12,600 which shed 67,650 contracts.

Maximum put open interest of 31.60 lakh contracts was seen at 12,000 strike price, which will act as crucial support in the February series. This is followed by 11,500 strike price, which holds 22.52 lakh contracts in open interest, and 11,600 strike price, which has accumulated 18.81 lakh contracts in open interest.

Put writing was seen at the 11,600 strike price, which added 1.34 lakh contracts, followed by 11,400 strike, which added 80,400 contracts.

Put unwinding was seen at 11,700 strike price, which shed 69,450 contracts, followed by 12,100 strike price which shed 13,575 contracts.

A high delivery percentage suggests that investors are showing interest in these stocks.

Based on open interest (OI) future percentage, here are the top 10 stocks in which long build-up was seen.

An increase in open interest, along with a decrease in price, mostly indicates a build-up of short positions. Based on open interest (OI) future percentage, here are the top 10 stocks in which short build-up was seen.

A decrease in open interest, along with an increase in price, mostly indicates a short-covering. Based on open interest (OI) future percentage, here are the top 10 stocks in which short-covering was seen.

Kajaria Ceramics, Punjab & Sind Bank, Ingersoll Rand (India), IOL Chemicals and Pharmaceuticals, Shivam Autotech, Golden Tobacco, Jayshree Tea & Industries, DFM Foods, Grasim Industries, Balrampur Chini Mills, JMT Auto, Motherson Sumi Systems, Sandhar Technologies, Kalpataru Power Transmission, Sundaram Finance, Shree Rama Multi-Tech are the companies that will declare their results on February 10.

Cipla expands women’s health portfolio through acquisition of 4 key brands from Wanbury Om Metals Infraprojects bags Rs 263.11 crores order from government of Madhya Pradesh J&K Bank board approves raising up to Rs 500 crore via share issue to government Yes Bank: Lender gets shareholders’ nod to raise up to Rs 10,000 cr via equity share issuance/convertible securities. Tata Steel: Q3 consolidated loss at Rs 1,228 cr vs profit of Rs 1,753.1 cr, revenue dips 8.6% to Rs 35,520.4 cr YoY. Britannia: Q3 profit jumps 23.3% to Rs 369.9 cr, revenue rises 4.9% to Rs 2,982.7 cr YoY. KEC International: Q3 profit rises 30.7% to Rs 144.9 cr, revenue jumps 16.1% to Rs 3,073.1 cr YoY. Godfrey Phillips Q3: Net profit up 39.1 percent at Rs 114 crore versus Rs 81.9 crore, revenue up 14.3 percent at Rs 761.3 crore versus Rs 666.8 crore, YoY NTPC Q3: Net profit up 25.6 percent at Rs 2,995.1 crore versus Rs 2,385 crore, revenue down 2.6 percent at Rs 23,496 crore versus Rs 24,120.4 crore, YoY UPL Q3: Net profit at Rs 701 crore and revenue at Rs 8,892 crore Ashoka Buildcon Q3: Net profit at Rs 25.4 crore versus loss of Rs 17.1 crore, revenue down 6.3 percent at Rs 1,280 crore versus Rs 1,366.5 crore, YoY Whirlpool Q3: Net profit up 23 percent at Rs 76.5 crore versus Rs 62.2 crore, revenue up 4.9 percent at Rs 1,271.2 crore versus Rs 1,211.5 crore, YoY ACC Q4: Standalone net profit at Rs 269.2 crore versus Rs 730.5 crore, revenue up 4.2% at Rs 4,060.3 crore versus Rs 3,895.4 crore, YoY Oberoi Realty Q3: Net profit up 7.5 percent at Rs 148.2 crore versus Rs 137.9 crore, revenue down 0.2 percent at Rs 527.4 crore versus Rs 528.6 crore, YoY SML Isuzu Q3: Net loss of Rs 17.9 crore versus loss of Rs 14.8 crore, revenue at Rs 176.5 crore versus Rs 231.6 crore, YoY Mahanagar Gas Q3: Net Profit down 31.2 percent at Rs 186 crore versus Rs 270.6 crore, revenue down 4.9 percent at Rs 819.1 crore versus Rs 861.6 crore, QoQ Indiabulls Housing Finance – CRISIL revises long-term rating to AA/stable Dr Reddy’s Laboratories – Curis, Inc. entered into an amendment of its collaboration, license and option agreement with Aurigene Discovery Technologies Maruti Suzuki – January 2020 production at 1,79,103 against 1,83,064 in January 2019 FII and DII data Foreign institutional investors (FIIs) bought shares worth Rs 161.93 crore, while domestic institutional investors (DIIs) sold shares worth Rs 178.59 crore in the Indian equity market on February 7, provisional data available on the NSE showed. Fund flowStock under F&O ban on NSE Yes Bank is under the F&O ban for February 10. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.